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Technology Stocks : Newbridge Networks -- Ignore unavailable to you. Want to Upgrade?

To: Tunica Albuginea who wrote (17383)	2/21/2000 1:29:00 PM
From: Tunica Albuginea	Read Replies (1) \| Respond to of 18016

Financial Times ; 21-Feb-2000: Alcatel... is close to acquiring ... Newbridge Networks.ÿ globalarchive.ft.com COMPANIES & FINANCE: INTERNATIONAL:ÿ ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Alcatel close ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ to sealing deal on Newbridge ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Financial Times ; 21-Feb-2000 12:00:00 am ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Alcatel, the French telecoms equipment maker, is close to ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ acquiring the Canadian group Newbridge Networks.ÿ ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ The acquisition, which could be announced tomorrow or ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Wednesday, would give Alcatel a stronger position in the market ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ for switches for the current generation of data networks.ÿ ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Newbridge shares fell almost 8 per cent on Friday to Dollars 32 ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 3/4 in New York on news that the deal would be valued at about ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Dollars 6.5bn, or roughly Dollars 36 per share. Alcatel shares fell ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 4 3/16 to Dollars 47 3/8. But analysts said that Newbridge, which ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ reports its earnings late tomorrow, is letting it be known that it ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ expects the price to be higher, indicating that the two sides are ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ still haggling over the terms of the deal.ÿ ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ "Newbridge folks say they want it in the low 40s and they're pretty ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ confident they'll get it," said Jim Kedersha, analyst with SG ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Cowen. An offer of Dollars 40 per share would be worth just over ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Dollars 7.2bn.ÿ ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Newbridge, which boasts the world's best-selling ATM switch for ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ business networks, put itself up for sale last November after ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ failing to meet its earnings' targets for the sixth time in the last 10 ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ quarters. The company is also a leader in high-speed wireless ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ data transmission. But it has suffered from serious management ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ problems and the rapid decline of its older, higher-margin ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ voice-switching business. ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Alcatel has been scrambling to beef up its ability to produce the ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ next generation of data-based networks, and in the last two years ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ has acquired DSC, Xylan and Assured Access Technology. But ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Alcatel has yet to acquire the full array of data networking ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ products that most carriers are demanding.ÿ ÿÿÿÿÿÿÿÿÿÿÿÿÿ ÿ "They're getting desperate and they should be worried because ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ the voice business is going to drop off a cliff," said Michael ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Urlocker, analyst with Scotia Capital Markets in Toronto.ÿ ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ The acquisition would give Alcatel a foothold in the North and ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ South American markets, which generate about half of ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Newbridge's revenue.

To: Tunica Albuginea who wrote (17383)	2/21/2000 1:34:00 PM
From: Bob Howarth	Respond to of 18016

TA. I don't like the IR guy quitting as it is hard to get good IR people and ALA takeover is not IMHO relevant to that. If ALA offers 36 / share in ALA shares, and after a quarter or two the merger is seen as very accretive as we on the thread keep saying, then ALA will pop back quickly and easily hit 60. 60 * .8 = 48. Plus, ALA is priced in Euros. If Euro rallies to 105 - 110 this year, its like getting a free dividend to boot. TM should be happy to first show that ALA/NN will work, and thus should be happy with the possibility of getting close to 50 by end of year. Anyone else watching the incredible amount of money that Siemanns is raising? Does anyone here own Siemans? They have announced their strategic plan. I wonder if after ALA/NN, they in turn merge with what is left of Siemans. I really think we are only in the first inning of what will be a very interesting 12 - 18 months. Patience is required!

To: Tunica Albuginea who wrote (17383)	2/21/2000 1:35:00 PM
From: Bob Howarth	Read Replies (3) \| Respond to of 18016

TA. I don't like the IR guy quitting as it is hard to get good IR people and ALA takeover is not IMHO relevant to that. If ALA offers 36 / share in ALA shares, and after a quarter or two the merger is seen as very accretive as we on the thread keep saying, then ALA will pop back quickly and easily hit 60. 60 * .8 = 48. Plus, ALA is priced in Euros. If Euro rallies to 105 - 110 this year, its like getting a free dividend to boot. TM should be happy to first show that ALA/NN will work, and thus should be happy with the possibiliy of getting close to 50 by end of year. Anyone else watching the incredible amount of money that Siemanns is raising? Does anyone here own Siemans? They have announced their strategic plan. I wonder if after ALA/NN, they in turn merge with what is left of Siemans. I really think we are only in the first inning of what will be a very interesting 12 - 18 months. Patience is required!